ASK Property Fund, the real estate private equity arm of Blackstone backed ASK Asset & Wealth Management Group, has announced a successful exit of INR 156 crore from Avon Vista, a project being developed by Naiknavare Developers.
Avon Vista is a mid-segment project, located in Balewadi, Pune, comprising of 613 units. ASK Property Fund had invested INR 80 Cr in this project in 2018. The recent exit has achieved a targeted IRR of 21% and a 2x multiple of the capital invested.
As per ASK Property Fund Research, the residential demand in this corridor is largely supported by presence of job clusters, IT/ITeS developments in Hinjewadi, and excellent road infrastructure. Avon Vista benefited from the micro market attributes, experiencing robust sales. The healthy absorption and completion of the project have led to a successful exit from the project.
Amit Bhagat, CEO & MD, ASK Property Fund said, “This was a recapitalisation opportunity and before the NBFC crisis. By providing the requisite and flexible working capital, we ensured the project’s completion, supported by sales during the life of the project. The investment was self-liquidating with regular cash flow from the sales and collection linked to milestone. We truly believe all projects in the established suburbs which are job clusters have healthy absorption if completed as per committed timeline.”
Sunil Rohokale, MD & CEO, ASK Asset & Wealth Management Group said, “Pune is primarily an end-user market and is one of our preferred cities for investment. The city has demonstrated significant potential and is one of the best-performing cities in terms of residential absorption. We have invested in 12 projects covering a total area of over 16 million square feet here. We look forward to making further investments in western India, including Pune and the Mumbai Metropolitan Region”.
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